WallStSmart

Benchmark Electronics Inc (BHE)vsSonos Inc (SONO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Benchmark Electronics Inc generates 89% more annual revenue ($2.82B vs $1.49B). SONO leads profitability with a 3.8% profit margin vs 1.9%. SONO trades at a lower P/E of 32.6x. BHE earns a higher WallStSmart Score of 58/100 (C).

BHE

Buy

58

out of 100

Grade: C

Growth: 6.7Profit: 4.5Value: 4.3Quality: 8.0
Piotroski: 4/9Altman Z: 2.95

SONO

Buy

51

out of 100

Grade: C-

Growth: 6.0Profit: 5.0Value: 3.7Quality: 7.0
Piotroski: 3/9Altman Z: 2.04
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for BHE.

SONOSignificantly Overvalued (-31.5%)

Margin of Safety

-31.5%

Fair Value

$12.55

Current Price

$15.64

$3.09 premium

UndervaluedFair: $12.55Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BHE4 strengths · Avg: 8.8/10
EPS GrowthGrowth
1937.0%10/10

Earnings expanding 1937.0% YoY

Debt/EquityHealth
0.289/10

Conservative balance sheet, low leverage

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
17.7%8/10

17.7% revenue growth

SONO2 strengths · Avg: 9.5/10
EPS GrowthGrowth
87.5%10/10

Earnings expanding 87.5% YoY

Debt/EquityHealth
0.159/10

Conservative balance sheet, low leverage

Areas to Watch

BHE4 concerns · Avg: 2.8/10
Return on EquityProfitability
3.1%3/10

ROE of 3.1% — below average capital efficiency

Profit MarginProfitability
1.9%3/10

1.9% margin — thin

Operating MarginProfitability
4.2%3/10

Operating margin of 4.2%

P/E RatioValuation
54.6x2/10

Premium valuation, high expectations priced in

SONO4 concerns · Avg: 3.3/10
P/E RatioValuation
32.6x4/10

Premium valuation, high expectations priced in

Market CapQuality
$1.73B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
6.2%3/10

ROE of 6.2% — below average capital efficiency

Profit MarginProfitability
3.8%3/10

3.8% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : BHE

The strongest argument for BHE centers on EPS Growth, Debt/Equity, Price/Book. Revenue growth of 17.7% demonstrates continued momentum. PEG of 1.33 suggests the stock is reasonably priced for its growth.

Bull Case : SONO

The strongest argument for SONO centers on EPS Growth, Debt/Equity.

Bear Case : BHE

The primary concerns for BHE are Return on Equity, Profit Margin, Operating Margin. A P/E of 54.6x leaves little room for execution misses. Thin 1.9% margins leave little buffer for downturns.

Bear Case : SONO

The primary concerns for SONO are P/E Ratio, Market Cap, Return on Equity. Thin 3.8% margins leave little buffer for downturns.

Key Dynamics to Monitor

BHE profiles as a growth stock while SONO is a value play — different risk/reward profiles.

SONO carries more volatility with a beta of 1.96 — expect wider price swings.

BHE is growing revenue faster at 17.7% — sustainability is the question.

BHE generates stronger free cash flow (29M), providing more financial flexibility.

Bottom Line

BHE scores higher overall (58/100 vs 51/100) and 17.7% revenue growth. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Benchmark Electronics Inc

TECHNOLOGY · ELECTRONIC COMPONENTS · USA

Benchmark Electronics, Inc. provides product design, engineering services, technology solutions, and advanced manufacturing services in the Americas, Asia, and Europe. The company is headquartered in Tempe, Arizona.

Sonos Inc

TECHNOLOGY · CONSUMER ELECTRONICS · USA

Sonos, Inc. designs, develops, manufactures, and sells multi-room audio products in the Americas, Europe, the Middle East, Africa, and Asia Pacific. The company is headquartered in Santa Barbara, California.

Want to dig deeper into these stocks?